AT&T Wireless has made a rare change to their terms of service, one that doesn’t bode well for consumers.

Like Verizon Wireless, the company now prevents users from streaming video from non-AT&T sources on their cell phones. The terms prevent streaming video, redirection of TV (Orb/Slingbox), and downloading video from the network.

It appears that sites like YouTube are exempted, via Apple’s iPhone deal. However, that may be limited to iPhone users. It is not clear the full scope of these changes, as they are broad and open to interpretation.

However, it does pave the way for AT&T to demand App Store vendors prevent the sale of video streaming applications on their devices. Apple for example could now be forced to require Orb, Truveo, Slingbox, and others require Wi-Fi only, much as VoIP applications do today.

This change comes at the same time that advocacy groups such as the Electronic Frontier Foundation ask the FCC to apply their recent net neutrality rulings against Comcast, to wireless providers. It is the opinion of PhoneNews.com that these rulings already apply, making these restrictions (as well as others barring phone-as-modem/tethering) moot and unenforceable.

AT&T has refused to respond to such inquires from PhoneNews.com, making it impossible to bring to the FCC what AT&T’s opinion on the matter actually is. AT&T is stonewalling on giving such an opinion, to make it more difficult for the FCC to rule either way, without a full inquiry.

On a positive note, this does create an Early Termination Fee loophole, wherein customers may terminate their service within the next 30 days. Per CTIA policy (which all carriers have agreed to), any material change to services requires AT&T to allow people to cancel service without any termination fees.

Read more to see the exact changes (and article update).

In the revised AT&T terms and conditions, AT&T added the following to their prohibited usage clause:

“Downloading movies using P2P file-sharing services, customer-initiated redirection of television or other video or audio signals via any technology from a fixed location to a mobile device, Web broadcasting, and/or for the operation of servers, telemetry devices and/or Supervisory Control and Data Acquisition devices is prohibited.”

Update: AT&T has retracted this change, in a memo to the media. The carrier claims this was a typographical error, also claiming that the terminology was copied over from an older agreement. However, PhoneNews.com cannot find this terminology in any older version of the AT&T Wireless or Cingular terms.

Moreover, continuing the internal company embargo noted in the original report, AT&T refused to provide this information to PhoneNews.com directly… continuing their long-standing internal position to not discuss any matters of net neutrality with PhoneNews.com specifically.

Christopher Price is the Founding Editor of PhoneNews.com. Today, he leads the team building Console, Inc. - a new kind of Android™ device. He still likes to pontificate... a lot. You can visit his personal blog at ChristopherPrice.net.

Phonenews should get a campaign started to take this to the FCC. In fact, phonenews should partner up with the folks at http://www.savetheinternet.com as they already have the resources to take it to the FCC. They were largely responsible for the FCC ruling against Comcast regarding net neutrality.

I was looking at canceling my AT&T data plan using a data card. This was a clincher for me. Recognizing the 5G limit, can I no longer do video chats with family? Can I not stream using Sling? I called AT&T.

The data card support team said this was to prohibit “limitary”, things like usage in Taxi Cabs . . . ? I could not find this anywhere on the net, so I asked if they would write up an exclusion or clarification for me. This may not work long term, but will at least shield me from any accusation of violating the TOC.

This is what they wrote for me:
2. For the Laptop connect services with AT&T the terms and conditions for video sharing with his family or slingbox is not prohibted. In the T&C they are stating that it is prohited to do limitary with the service. As long as the customer does not go over the 5GB package or international traval should not be charged anything addtional.

Next time something like this comes up where you can cancel your contract. Do you have to also lose your phone number? Or will they cancel the contract but let you keep service? If they close the account righ tthen, you can’t port it out, right?

Would it be possible to cancel the contract, keep service, and then get the new customer discount on a new phone for agreeing to a new contract (same plan, same rates, same number)?

Ever since Wireless Number Portability was implemented, a carrier must give you the option of allowing you to port your number out, when the ETF is waived.

Generally, the procedure to do this is to first call customer service and have them waive the ETF. Tell them at that time that you want to port your number to another carrier. They are supposed to schedule your account to be deactivated at a later date (such as the end of your billing cycle). Then, initiate the port as you normally would.

To the second part of your question, no. The only way to “restart” with a new carrier is to port to another service (such as prepaid) and wait out the three-to-six month period that carriers require (check with the carrier to see how long their policy is). Once you sit out that period, and are considered a new customer, you can then port your number back from prepaid to the original carrier.

Of course, a workaround would be to set up service using a friend or family member to start the account. Then, close out the old account (port to another carrier). Finally, do a change of financial responsibility on the new account to your name. Your mileage will vary, as some carriers may prohibit this on customers with recently-closed accounts. You would port the old number to prepaid, and finally port it back in once the change of financial responsibility is finished. Complicated, but it should work in most cases.

I ended up paying the early termination fee and in the end it was worth it just to get rid of the contract. Now I have canceled the contract and good riddance to it, I will never sign a contract for a cell phone again. I decided to get a prepaid Net10 phone instead, I was able to keep my number and I have been very pleasantly surprised to find how much cheaper they are. Long distance and roaming is the same price as local calls and I donâ€™t have to pay any hidden fees. Even if you have the pay the ETF and canâ€™t get it waved Iâ€™d say do it and cut your losses because you guys are being cheated.